News DeskDubai, UAE – Arthur D. Little (ADL), a global management consultancy, has launched a new data-driven framework aimed at helping Gulf Cooperation Council (GCC) countries optimize the allocation of their vast natural gas resources. The framework, called the Resource Utilization Index (RUI), is designed to enable policymakers and corporate planners to evaluate the economic, industrial, and social value generated by gas in a structured, comparable way.
The move comes as the GCC, which holds more than 40 trillion cubic meters (tcm) of proven natural gas reserves—approximately 20% of the world’s total—seeks to balance rising domestic demand with a push for economic diversification. While Qatar leads the region with 24.7 tcm of reserves and is a global leader in liquefied natural gas (LNG) exports, other major producers like Saudi Arabia, the UAE, and Oman face increasing internal consumption. Meanwhile, import-reliant states such as Kuwait and Bahrain are under growing supply pressure.
A Shift from Traditional Allocation
Traditionally, gas allocation in the region has followed a simple logic: meet domestic power needs, support key industries, and fulfill export commitments. However, ADL’s research warns that this straightforward approach could lead to significant untapped value.
The RUI addresses this by integrating five key strategic dimensions into a single comparative score:
- EBITDA Impact: Measures the true profitability generated per unit of gas, adjusted for opportunity cost.
- GDP Contribution: Captures the direct, indirect, and induced effects of gas use on national output, including multiplier effects.
- Employment Generation: Assesses both the number and quality of jobs created, their alignment with national workforce strategies, and their role in skills development.
- Economic Complexity: Examines how gas allocation supports industrial upgrading and diversification towards more sophisticated, high-value exports.
- Global Market Synergies: Identifies how gas utilization can leverage existing infrastructure and trade partnerships to expand the region’s economic footprint.
Strategic Decisions for a Changing Landscape
Energy-intensive industries, such as aluminum smelting, where energy can account for up to 40% of production costs, highlight the importance of the new index. The RUI helps decision-makers weigh the cost competitiveness gained from affordable gas against the potential value of redirecting that same gas to higher-return uses like LNG exports or advanced petrochemicals.
“The RUI is not about prescribing a single path for gas allocation,” said Peter Kaznacheev, Principal at Arthur D. Little Middle East. “It’s about equipping decision-makers with the tools to make choices that align with national goals, economic diversification, and long-term resilience.”
The index can be tailored to a country’s specific national priorities by adjusting weightings across its five dimensions. It can also be recalibrated as market conditions evolve or new industries emerge.
Ilya Epikhin, also a Principal at Arthur D. Little Middle East, added, “In a time of shifting global alignments and economic recalibration, the RUI empowers GCC nations to view gas not just as an energy source, but as a strategic lever for sustainable growth.”
By quantifying the economic, social, and strategic value of each cubic meter of natural gas, the RUI provides GCC leaders with a unified lens for making allocation decisions that support diversification, competitiveness, and resilience in a rapidly evolving energy landscape.
